Study of customer feedback & shrinkage reduction in food bazaar
1. A
Project Report On
“Study of Customer Feedback and Shrinkage
Reduction at Food-Bazaar
In
Big Bazaar, Sinhgad Road, Pune”
Submitted to University of Pune in Partial Fulfillment of
Requirement for the Award of Degree of
“MASTER OF BUSINESS ADMINISTRATION”
By
Mr. Giridhar Shinde
Under the guidance of
Mr. Yatin Bokil
SKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT,
AMBEGAON (Bk), PUNE
(2011-13)
2. DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “Study of
Customer Feedback and Shrinkage Reduction at Food Bazaar in Big Bazaar,
Sinhgad Road, Pune” written and submitted by me to the University of Pune, in partial
fulfillment of the requirement for the award of degree of Master of Business
Administration under the guidance of Mr. Yatin Bokil, is my original work and the
conclusions drawn therein are based on the material collected by myself.
Place: Pune
Date: / / Signature of Student
1
3. ACKNOWLEDGEMENT
I sincerely express my deep sense of gratitude to Dr. Rajashree Shinde, Director
SKNSSBM for the invaluable guidance and constant encouragement which is invaluable
in completing of this project.
I am thankful to Mr. Rupesh Singh (Store Manager), Sinhgad Road Big-Bazaar,
Pune for his constructive discussions and perseverance during this project. Also I would
like to thank the all staff of Big-bazaar, Sinhgad road for their valuable suggestions and
useful comments throughout this project.
I am also thankful to Mr. Yatin Bokil, for his extraordinary cooperation,
invaluable guidance and supervision throughout this project.
I owe and respectfully offer my thanks to my noble parents for their constant
moral support and mellifluous affection which helped me to achieve success in every
sphere of life and without their kind devotion this thesis would have been a sheer dream.
I sincerely acknowledge the efforts of all those who have directly or indirectly
helped me in completing my thesis successfully.
It is the kindness of these acknowledged persons that this thesis sees the light of
the day. I submit this thesis of mine with great humility and utmost regard.
Mr. Giridhar Shinde.
2
4. INDEX
Chapter Particulars Page No.
No.
Executive Summary
1. Introduction 1
2. Profile of the organization 4
3. Research Design & Methodology 16
4. Conceptual Background 19
5. Data Presentation , Analysis and Interpretation 29
6. Findings , Suggestions and Conclusion 47
Bibliography
Annexure
3
6. EXECUTIVE SUMMARY
The study of customer feedback & shrinkage reduction is very important for any
retail store. Study of customer feedback gives organizations an idea of what exactly
customer wants, which helps them in delivering what is required by the consumers hence
given them maximum satisfaction which is of utmost importance in these competitive
world of retail. By reducing the shrinkage; store can improve the revenue & loss will be
minimized.
Big bazaar is one of the retail giants which have come up as a revolution in the
retail industry. Big Bazaar has six outlets in Pune and one of this outlet is on Sinhgad
Road. The Big Bazaar management at Sinhgad road, Pune felt that they had a slight
reduction in the footfalls of Food-Bazaar and hence they wanted to find out the various
factors responsible for the same by taking the feedback from customers. They also
wanted to identify the various reasons for shrinkage in their outlet & wanted to reduce the
shrinkage. On this background this project was conceptualized and initiated.
The project is about understanding the needs & expectations of customers through
their feedback and understanding various aspects which influence the consumer buying
behavior. The project also includes the study of shrinkage, causes of shrinkage and
preventive ways to reduce shrinkage to reduce losses and thereby increase profitability.
Based on findings of study, suggestions have been given to management of Food
Bazaar so that it can sustain old customers, also gain new customers and reduce
shrinkage which can result in increasing revenue and also aid Food Bazaar in sustaining
its competitive advantages in market.
5
8. INTRODUCTION
India is the second fastest growing economy in the world. It is third largest
economy in the world in terms of GDP and fourth largest economy in terms of
Purchasing Power Parity. India presents a huge opportunity to the world at age, to use as
a hub. Standing on the threshold of a retail revolution and witnessing a fast changing
retail landscape, India is all set to experience the phenomenon of global village. India is
the “promised land” for global brands and Indian retailers A “Vibrant economy”. India
tops in the list of emerging market for global retailer and India‟s retail sector is
expanding and modernizing rapidly in line with India‟s economic growth. The future is
promising; the market is growing, government policies are becoming more favorable and
emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom
industry. Modern retail has entered India as seen in sprawling shopping centers, multi-
storied malls and huge complexes offer shopping, entertainment and food all under one
roof. The Indian retailing sector is at an inflexion point where the growth of organized
retailing and growth in the consumption by the Indian population is going to take a higher
growth trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years, nuclear
families in urban areas, along with increasing working-women population and emerging
opportunities in the services sector are going to be the key growth drivers of the retail
sector in India.
Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214
stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space.
Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters
offering a wide range of merchandise including fashion and apparels, food products,
general merchandise, furniture, electronics, books, fast food and leisure and entertainment
sections.
In July 2002, Big Bazaar made a challenging extension: It entered the food retail
with a 9000 Sq. ft. Food Bazaar at its Lower Parel store in Mumbai. Enthused by the
phenomenal response, the company has set up Food Bazaar in other Big Bazaar stores
also. The company‟s reason for entering food retail was food spending at 53% of personal
7
9. income outstripped every other itemized spending in India. Despite this high spending, the
role of organized food retail in the country‟s total food spend was just one percent.
The company‟s Food Bazaar was adapted to the Indian environment. To attract
regular bazaar-goers, a mandi was created within the Food Bazaar where consumers could
touch, feel, pick and choose products. This choice was supplemented by the provision for
packaged food for the westernized shoppers. Food Bazaar prices were priced at wholesale
rate below the MRP. Private labels were introduced for high margin and price sensitive
products like tea, salt and oil.
The project is based on a survey done on customers of Food Bazaar, Sinhgad
Road, Pune; which is a type of hypermarket providing all products at low cost. It is also
known as one store shop wherein a customer gets all products under a roof.
Customer feedback is the process of providing information to businesses about
products, services and customer service. Management, marketing and sales departments
can all use customer feedback to streamline processes and improve profitability. Customer
comments and complaints given to a company are an important resource for improving
and addressing the needs and wants of the customer.
The project is about the study of customer feedback to understand what
exactly customer wants, which will help them in delivering what is required by the
consumers hence giving them maximum satisfaction. Also it includes the study of
shrinkage at Food Bazaar and its causes. Thus by reducing shrinkage store can improve
the revenue & loss will be minimized.
8
10. OBJECTIVES:
1) To study factors influencing the customer buying behavior at Food Bazaar.
2) To find the level of satisfaction of customers on various aspects of Food Bazaar.
3) To identify the reasons for shrinkage in Food Bazaar.
4) To provide suggestions to management of Food Bazaar for enhancing customer
satisfaction and for shrinkage reduction based on findings of the study.
SCOPE:
The scope includes study of the feedback of customers and shrinkage reduction at
Food Bazaar, Sinhgad Road, Pune. Within Food Bazaar, aspects of various departments
have been studied in general and scope does not include study of other departments in
Big Bazaar (i.e. departments other than Food Bazaar).
LIMITATIONS:
1) Research time is limited only to two months.
2) Many of the senior citizens are somewhat reluctant to fill up the questionnaire.
3) There may be the possibility of bias in the responses.
4) In a rapidly evolving retail scenario, the marketing environment changes are
important to be considered in order to assimilate the findings.
5) The findings of study are limited to Food Bazaar in Big Bazaar on Sinhgad Road
only.
9
12. INTRODUCTION
Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as
Manz Wear Private Limited under the stewardship of Mr. Kishore Biyani. It was
converted into a public limited company in September, 1991. PRIL set up its first
menswear Pantaloon Shoppe outlet in 1993. The company‟s name was changed to
Pantaloon Retail (India) limited in 1999, when it made a fully fledged entry into the retail
segment through the Pantaloons Family Store.
As India‟s leading retailer, Pantaloon Retail inspires trust through innovative
offerings, quality products and affordable prices that help customers achieve a better
quality of life every day. It serves customers in 85 cities and 60 rural locations across the
country through over 15 million square feet of retail space. Pantaloon Retail is the
flagship company of Future Group, India‟s retail pioneer catering to the entire Indian
consumption space. Through multiple retail formats, we connect a diverse and passionate
community of Indian buyers, sellers and businesses. The collective impact on business is
staggering: Around 220 million customers walk into our stores each year and choose
products and services supplied by over 30,000 small, medium and large entrepreneurs
and manufacturers from across India. This number is set to grow. It operates multiple
retail formats in both the value and lifestyle segments of the Indian consumer market
including:
Pantaloons - a chain of fashion Big Bazaar - a uniquely HomeTown - One- stop
outlets. Indian hypermarket chain. destination for every
Indian home-owner.
Food Bazaar - a supermarket Central - a chain of seamless Ezone - eZone brings to
chain that blends the look and destination malls. you the latest in
feel of Indian bazaars with electronics at the lowest
modern retail aspects like choice, prices.
convenience and quality.
Other formats include Brand Factory, Ethnicity, Planet Sports, aLL and more.
11
13. As modern retail drives fresh demand and consumption in new categories, it‟s
strategy is based on a deep understanding of Indian consumers the products they want,
and making these products available in every city in every store format. It is in line with
its broad objective of being a catalyst in India‟s consumption-led growth and being a
positive agent of change in the communities we serve. Future group continues to be
India‟s leading multi-format retailer and a leader in sustainability and employment
opportunity. Through over 15 million square feet of retail space, we serve customers in
85 cities and 60 rural locations across the country. Around 220 million customers walk
into stores each year. We employ 35,000 people directly from every section of our
society.
LEADERSHIP:
“Modern retail will drive new demand, drive consumption in new categories and as
retailers, we will have to play a major role and create demand for many new products.”
--Mr.Kishore Biyani. (MD)
Kishore Biyani is the Managing Director and the Group Chief Executive Officer
of Future Group. Considered a pioneer of modern retail in India, Kishore‟s leadership
has led Future Group‟s emergence as India‟s leading retailer operating multiple retail
formats that cater to the entire basket of Indian consumers.
Kishore Biyani led the company‟s foray into organized retail with the opening of
the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big
Bazaar, a uniquely Indian hypermarket format that democratized shopping in India. It
blends the look and feel of the Indian bazaar with aspects of modern retail like choice,
12
14. convenience and quality. This was followed by a number of other formats including Food
Bazaar, Central and Home Town.
Shailesh Haribhakti (Chairman and Non-Executive Independent Director )
S Doreswamy (Non-executive Independent Director )
Dr. Darlie Koshy (Non-executive Independent Director )
Anil Harish ( Non-executive Independent Director )
Bala Deshpande (Non-executive Independent Director )
Vijay Kumar Chopra (Non-executive Independent Director )
Gopikishan Biyani (Non-executive Director )
Rakesh Biyani (Executive Director )
Vijay Biyani (Executive Director )
Kailash Bhatia.( Executive Director)
VISION & MISSION OF THE ORGANIZATION:
Manifesto
Rewrite Rules. Retain Values.
Vision
We shall deliver
Everything,
Everywhere,
Every time for,
Every Indian Consumer
in the most profitable manner.
Mission
We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future scenarios in the consumption space leading
to economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.
13
15. We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we
do.
We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.
Core Values
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.
Simplicity & Positivity: Simplicity & positivity in thought, business & action.
Adaptability: to be flexible and adaptable, to meet challenges.
Flow: to respect and understand the universal laws of nature.
HISTORICAL BACKGROUND:
2012 : Big Bazaar is planning to add further value to its retail services by offering
Value added services like grinding, de-seeding, vegetables cutting at free of
cost. Partnered with Disney to launch "Kidz Cookies", exclusively for kids
across India.
2011 : Big Bazaar has come up a new logo with a new tag line: „Naye India Ka
Bazaar‟. Also opened 200th store in India. Future Group has launched its
latest venture, Foodhall – a premium food destination across 10 metros in
India.
2010 : Future Value Retail Limited is formed as a specialized subsidiary to
spearhead the group‟s value retail business through Big Bazaar, Food Bazaar
and other formats. Ranked 6 among the Top 50 Service Brands in India.
2009 : Big Bazaar captures almost one-third share in food and grocery products
sold through modern retail in India. Mahendra Singh Dhoni and Asin were
chosen as the brand ambassadors of Big Bazaar.
14
16. 2008 : Big Bazaar crosses the 100-store mark, marking one of the fastest
expansions of the hypermarket format anywhere in the world. Big Bazaar
initiated the Mega Saving "Monthly Bachat Bazaar" campaign.
2007 : Future group crosses the $1 billion turnover mark. Big Bazaar partners with
Futurebazaar.com to launch India's most popular shopping portal.
2006 : Big Bazaar launches Shakti, India‟s first credit card program tailored for
housewives. Navaras – the jewellery store launched within Big Bazaar stores.
2004 :Big Bazaar and Food Bazaar awarded the country‟s most admired retailer
award in value retailing and food retailing segment at the India Retail Forum.
2003 : Big Bazaar enters Tier II cities with the launch of the store in Nagpur.
2002 : Food Bazaar, the supermarket chain is launched in Mumbai at High Street
Phoenix.
2001 : Pantaloon Retail launches three Big Bazaar stores (Hypermarket chain)
within a span of 22 days in Kolkata, Bangalore and Hyderabad.
1997 : Pantaloon Retail enters modern retail with the launch of the first 8000-sq. ft.
store Pantaloons in Kolkata.
1994 : The Pantaloon Shoppe, our exclusive menswear store in a franchisee format
is launched across the nation. The company starts distribution of branded
garments through multi-brand retail outlets across the nation.
1992 : Pantaloon Retail India Ltd. made an Initial public offer (IPO) in the month
of May.
1991 : BARE, an Indian denim brand is launched.
1987 : The company is incorporated under the name of Manz Wear Private Ltd.
Pantaloons: one of India‟s first formal trouser brands is launched.
15
17. ORGANIZATIONAL CHART
Store Manager
(SM)
Asst. Store
Manager
(ASM)
Supprt Operation
Warehou-
HR VM Cash CSD
se
Non- General
Food Fashion Merchan
Food
-dise
Dept. Dept. Dept. Dept.
Manager Manager Manager Manager
ADM ADM ADM ADM
Team Team Team Team
Leader Leader Leader Leader
Team Team Team Team
Member Member Member Member
16
18. CURRENT STATUS OF THE ORGANIZATION:
In the last 5 years PRIL has evolved as a leading manufacturer-retailer in the
country with 13 Pantaloon departmental stores, 6 Big Bazaar hypermarket discount stores
and 6 Food Bazaar - food and grocery stores. „Pantaloons‟, „Big Bazaar‟ and „Food
Bazaar‟ together account for close to 650,000 sq.ft of retail space in the country.
Big Bazaar hypermarket discount stores have been positioned as „Is se sasta aur
acha kahin nahi!‟- with price as the key value proposition. Products are cheaper than
market price by 5%-60%. Apparels are normally cheaper by 25% to 60% than the
prevailing market prices, while other product categories are cheaper by 5% to 20%.
Food Bazaar – Food Bazaar represents the company‟s entry into food retail and
is targeted across all classes of population. Food Bazaar replicates a local „mandi‟, to
provide the much important „touch & feel‟ factor which Indian housewives are used to in
the local bazaar. Food Bazaar has over 50,000 stock keeping units which cover grocery,
FMCG products, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides
fruits and vegetables. All products are sold below MRP and discounts range between 2%
to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices.
PRIL has drawn up an aggressive expansion plan over the next two years. An
estimated 380,000 sq ft of additional retail space would be operational in F6/04 and
another 680,000 sq.ft. by F6/05. The company has already identified and signed up space
for 11 Big Bazaars, 2 Food Bazaar‟s, 4 Pantaloon‟s, and 2 Central Malls. PRIL has also
created the requisite backend infrastructure necessary for expansion of its operations
nationally.
Warehouse - PRIL has a Central Warehouse at MIDC Tarapur. The warehouse is
created into modular fashion wherein first phase of 25,000 square feet is operational. The
company has zonal warehouses at Mumbai, Kolkata, Hyderabad and Chennai of 10,000-
15,000 square feet each.
Manufacturing facilities - The Company has one of the most modern trousers
manufacturing plant in the country. The trouser plant located at MIDC Tarapur in the
same premises of Central Warehouse. The plant was setup with technical knowhow from
Bellows, U.K. with completely automatic and the most modern machines for fusing,
serging, bottom hemming, welt pocket making operations. This factory has an installed
17
19. capacity to manufacture 1400pcs trousers a day. The company also has its own plant to
manufacture Denim jeans at Mumbai. The plant has an installed capacity to manufacture
700 jeans per day; it has been setup with best machinery from Durkopp Adler, Germany,
Juki, Japan, Brother, Japan, Union Special, and U.S.A amongst others.
Turnover of last four years:
Rs. Cr
12212
9787
7669
5841
2008 2009 2010 2011
Space evolution:
Operational store space increased to 13.25 million square feet, which includes
around 2 million square feet added after merger of home business.
Others, Other,
5.07 Big Big
5.9
Bazaar, Bazaar,
6.2 6.88
Food
Food
Bazaar,
Bazaar,
0.26
0.47
2008-2009 2009-2010
18
20. Sources: ANNUAL REPORT 2008-09
ANNUAL REPORT 2009-10
Others, ANNUAL REPORT 2010-11
Big-
7.04 Bazaar,
7.64 Note - Retail space in million
square feet
Food
Bazaar,
0.55
2010-2011
Footfalls:
x-axis- Footfall in million
Y-axis- Years
2008 163
2009 185
Footfall in million
2010 220
2011 297
0 50 100 150 200 250 300 350
19
21. DIFFERENT PRODUCT PROFILES OF THE FOOD-BAZAAR:
Chocolates Dry Fruits
Fruits and vegetables Beverages
Ready to cook Ready to eat
Staples Personal care
Home care Crockery
Utensils Refrigerated products
FUTURE PLANS OF THE ORGANIZATION:
Much like in other categories, in food too, it is witnessing a rapid transformation
of customer preferences. Modern trade brought in more choice and convenience to
shopping for food products and staples and in home and personal care products for
customers. Now in most cities, customers who had entered modern retail eight to ten
years back, with growing income and more acquaintance with global and local trends are
ready to taste more diverse cuisines at their dining table and demands more value added
products. And these customers are willing to pay more for it. In the large cities customers
are experimenting with international cuisine and with different regional Indian cuisine
with equal gusto. Customers are also demanding more healthy food choices and fresher
products, and are willing to pay a premium for it. This provides a unique opportunity for
modern retail.
20
22. During the year, the company opened 26 Food Bazaar outlets. A large number of
existing Food Bazaar outlets were also upgraded in order to offer more products and
services to the customer. These include, larger sections for fresh fruits and vegetables and
food services. In order to provide better quality and fresher produce, the company is tying
up with producers across the country for key fruits and vegetables and investing in
sourcing, sorting, packaging centers and as well as an efficient logistics network
including cold chains across the country for both domestic as well as imported produce.
The company is also set to open a state-of-the-art integrated food distribution center
outside Mumbai equipped with „on-conveyor sorting,‟ „put-to-light‟ supply chain
process, „roll-caged‟ based store delivery and similar technologies. Similar integrated
distribution centers will be rolled out in the key eight cities across the country during the
first half of the forthcoming financial year.
The company‟s specialized sourcing subsidiaries, Future Fresh foods Limited for
fruits and vegetables and Future Agrovet Limited, for staples, commodities, spices and
dry fruits too have acquired significant traction in sourcing directly from producers,
thereby yielding more control over product pricing and efficiencies for the company.
A key development during the financial year was also the growth of KB‟s
Fairprice format that crossed the 200th store mark. Present only in Delhi, Mumbai and
Bangalore, the format opened its 100th store in Delhi. The format has now matured and
come of age and the company is now confident of rolling out around fifteen stores every
month as it forms a key part of the company‟s growth strategy in this category.
A crucial roll out for the forthcoming year will be the launch of Food Hall – an
upgraded food store that will cater to a more evolved set of customers willing to pay a
higher price for more value added food products as well as international food ingredients.
The company has drawn up an extensive roll out strategy focusing both on merchandise
as well food services. While the first Food Hall has come up in the up market Palladium
Mall in Mumbai, the company has mapped more than 16 catchments in the country that
are ideal for opening this upper-end food retail format. In the year of 2010-11, future
value retail have opened 26 new Food-Bazaar outlets, 214 KB‟S Fairprice stores across
India in which 115 stores belongs to Delhi alone.
21
23. MILESTONE:
2012
CISO Award 2012: Future Group was felicitated for using Information security
technology in the most effective and innovative manner.
Golden Spoon Awards 2012: Most Admired Food and Grocery Retailer of the Year
for its Private Labels in Big Bazaar – Future Group.
Images Fashion Awards (IFA) 2012: Most Admired Private Label Retailer - Pantaloons.
ET Retail Awards 2012: FedEx Most Trusted Retailer of the Year Award – Big Bazaar.
Recognition by CMO Council, USA & Asia: Master Brand Award-Future Supply Chains.
Bloomberg UTV B-School Excellence Award - Best educational institute in Retail
- Future University
2011
Designomics Awards: Recognising Businesses that build value through Design.
CNBC AWAAZ Consumer Awards: Most Recommended Modern Retail Brand of the
year in the Popular Choice category- Big Bazaar
Brand Equity‟s Most Trusted Brands awards: Most Trusted Retailer - Big Bazaar
Images Retail Awards: Most Admired Retailer of the year in the Home Products Category.
Excellence Awards -for Finance & Accounting Transformation through Shared Services.
Golden Spoon Awards - Most Admired Food Retailer of the Year: Private Labels
– Food Bazaar
Marketing Excellence Awards held by Indira Group Of Institutes
-Best Employer Of The Year
ACE (Awards for Customer Excellence) 2011
Franchise India Expo 2011 - Best Food And Grocery Chain Of 2011-Food Bazaar
Best Value Retailer of 2011 - Big Bazaar
Food Retail & SCM and Agro Logistics: Food Supply Chain Company Of The Year
In Retail Category – Food Bazaar
22
25. INTRODUCTION
Research can be defined as a scientific and systematic search for pertinent
information on specific topic. It is careful investigation or inquiry, especially through
search for new facts in any branch of knowledge.
Marketing research is the systematic & objective identification, collection,
analysis, dissemination & use of information for the purpose of improving decision
making related to the identification & solution of problems & opportunities in marketing.
1. Research Design:
A research design is the overall program of research. It is the general blueprint for
the collection, measurement & analysis of data. It is the overall operational pattern or
framework of the project that stipulates what information is to be collected, from which
sources & by which procedure.
Research design used during project is “Descriptive Research”. In this
type of research, researcher has to portray accurately the characteristics of particular
individual, group or situation.
2. Data Collection Method:
Data can be collected directly through interaction or through existing records. The
data which is fresh and collected by interaction is known as primary source of data
collection while, data collected through existing records is known as secondary source.
1. Primary Source:
For this research the data is collected through survey method with
structured questionnaire as a research instrument, from the customers of Food
Bazaar in the premises of Big Bazaar, to gain insight about the consumer buying
behavior and also about various aspects related to shrinkage. The collected data
has been analyzed to provide findings and suggestions. The structured
questionnaire includes use of dichotomous question, multiple choice questions,
questions with rank order scaling and open ended questions. Also in-depth
interviews have been conducted with store manager and department managers.
Similarly some observations are drawn to find suggestive measures.
Thus the primary data collection methods used for the project includes:
24
26. 1. Survey method by administering structured questionnaire
2. In-depth interviews
3. Observations
2. Secondary Sources:
The data is collected through books, company manual, company website
& annual report. It is to gain insight and information about the various issues
relevant to the project. Secondary data gives direction to the project and hence it
plays a vital role in any project, for this project the secondary data sources are
1. Company Publications
2. Books
3. Websites
4. Newspapers
For study of shrinkage, latest store shrinkage report and books are
referred.
3. Sampling Procedure:
Sampling is the process of learning about the population on the basis of a sample
drawn from it. Thus, in the sampling technique instead of every unit of the universe only
a part of the universe is studied & the conclusions are drawn on that basis for the entire
universe. A sample is subset of population unit. The process of sampling involves three
elements:
1. Selecting the sample
2. Collecting the information
3. Making an inference about the population
The method of sampling used during project is “Convenience Sampling”.
4. Population:
It is the target group, which the researcher wants to know about by studying one
or more of its samples. The population for the study includes the customers of Food
Bazaar in Big Bazaar, Sinhgad Road, Pune.
25
27. 5. Sampling Unit:
The sampling unit is the basic unit containing the elements of the population to be
sampled. It may be the element itself, i.e., the object on which measurements are taken or
a unit in which the element is contained. Sampling unit chosen for the project is an
“Individual customer of Food Bazaar”.
6. Sample Size:
Sample Size is 80 customers of Food Bazaar in Big Bazaar, Sinhgad Road, Pune.
26
29. INDIAN RETAIL MARKET
Retailing in India is evolving rapidly, with consumer spending growing by
unprecedented rates and with increasing no of global players investing in this sector.
Organized retail in India is undergoing a metamorphosis and is expected to scale up to
meet global standards over the next five years. India‟s retail market has experienced
enormous growth over the past decade. The most significant period of growth for the
sector was between year 2000 & 2006, when the sector revenues increased by about
93.5% translating to an average annual growth of 13.3%. The sectors growth was partly a
reflection of the impressive Indian economic growth and overall rise in income level of
consumers. Retail sector is the largest contributing sector to country‟s GDP. Comparative
picture of GDP contribution by retail sector of year 2010 is shown below:
Sr. No. Country Contribution of retail sector to GDP
1 12%
USA
2 12%
India
3 8%-10%
China
4 6%
Brazil
With all these features and advantages, the opportunity for structural changes
from unorganized retail industry format to organized format has made the Indian markets
as a “Permissible ground” for global and domestic private players to fetch their goods and
fuel the economy to grow.
MEANING OF RETAIL:
The word retail is derived from the French word retailer, meaning to cut a piece
off or to break bulk. In simple terms, it implies a first-hand transaction with the customer.
Retailing can be defined as the buying and selling of goods and services. It can also be
defined as the timely delivery of goods and services demanded by consumers at prices
that are competitive and affordable.
Retailing involves a direct interface with the customer and the coordination of
business activities from end to end- right from the concept or design stage of a product or
28
30. offering, to its delivery and post-delivery service to the customer. The industry is
undoubtedly one of the fastest changing and dynamic industries in the world today.
CURRENT SCENARIO OF INDIAN RETAIL MARKET:
The size of Indian retail industry is more than US $350 billion but it is highly
unorganized. The organized sector has started developing in the past few years. Many
International brands have entered the market. With the growth in organized retailing,
unorganized retailers are fast changing their business models. According to study
conducted by ICRIER, total retail business in India will grow at 13% annually, from US
$322 billion in 2006-07 to US $590 billion in 2011-12 and further US $1 trillion by 2016-
17.
Size of Indian Retail
US$ bn 1011
600
322
2006-07 2011-12 2016-17
Source: Technopak Analysis, CSO and other sources.
FDI NORMS:
Regulatory controls on FDI have been relaxed considerably in recent years.
Currently the government allows 51% FDI in multi brand retailing and 100% in single
brand retailing & cash-n-carry business. Also government allowed FDI in aviation and
planning to allow for pharmaceuticals.
FACTORS DRIVING THE GROWTH OF RETAIL SECTOR:
The consistent economic growth resulted in a decent rise in income level of the
middle class. The thickening of the pocket of the consumer resulted in a revolution of the
29
31. retail industry. Many International brands have entered the market. With the growth in
organized retailing, unorganized retailers have brought drastic changes in their business
models; many factors are responsible for the growth of retail sector. These are:
1) Increasing disposable income
2) Increasing number of dual income nuclear families
3) Changing lifestyle and consumer behavior
4) Experimentation with formats
5) Store design
ISSUES BEFORE RETAIL SECTOR IN INDIA: Entry of Organized
Retail Players
In Indian retail sector organized retail is a recent phenomenon. It is a zero-sum
game between two players:-
a) Organized sector & b) unorganized sector
India‟s retail is dominated by a large number of small retailers consisting of the
local kirana shops, owner manned general stores, chemists, footwear shops, apparel
shops, paan & beedi shops, hand-cart hawkers, pavement vendors etc. which together
make up the so-called Unorganized retail.
Organized retail is reflected in sprawling shopping centers, multiplex-malls &
huge complexes which offer shopping, entertainment and food all under one roof. The
last 3-4 years have witnessed the entry of a number of organized retailers Opening stores
in various modern formats in metros and other important cities. Organized retailing has
begun to tap the enormous market but its share is small. However, opinions are divided
on the impact of growth of organized retail in the country. Concerns have been raised that
growth of organized retail may have an adverse impact on retailers in the unorganized
sector. It has also been that growth of organized retailing will yield efficiencies in supply
chain, enabling better success to markets to producers (including farmers and small
producers) and enabling higher prices, on the one hand and, lower prices to consumers,
on the other. In India, organized retail contributed roughly 5-8% of the total Indian retail
2011-12, which is very small even compared with most of the emerging market
economics.
30
32. 2006-2007 2011-12
Organised Unorganised
Unorganised Organised
8%
4%
92%
96%
Total Retail: US $322 billion Total Retail: US $421 billion
Interestingly, this huge growth in organized retail does not involve a decline in the
business of unorganized retail, the sales of the unorganized retail, the sales of the
unorganized sector is expected to grow by 10% p.a., from US$ 322 billion 2006-07 to US
$ 495.6 billion in 2011-12.
MODERN RETAIL FORMATS IN INDIA:
The face of India retail sector is changing; new & innovative business models are
being adopted. The formats prevalent in retail sector are:
1. HYPER MARKET – Hypermarket offer a large basket of products, ranging from
grocery, fries & processed food, beauty & healthcare products etc.
Ex.- Spencer‟s, Big Bazaar
2. CASH & CARRY – These are large B2B focused retail formats, buying & selling in
bulk for various commodities and carry several thousand stock-keeping.
Ex.-Mito, a Germany based C&G.
3. DEPARTMENT STORES - Department stores have a large layout with a wide range
of merchandise mix, usually in cohesive categories, such as showed towards garments.
Ex.:- Shopper‟s stop, Westside
4. SPECIALITY STORES – Specialty stores are single category, focusing on individuals
and group clusters of the same class with high product loyalty.
Ex.-Archies, Woodland
5. DISCOUNT STORE – A discount store is a retail store offering a wide range of
products, mostly branded, at discounted prices or apparel or footwear brands.
Ex.-Koutons, Levis.
31
33. 6. CONVENIENT STORE – A convenience store is a relatively small retail store located
near a residential area (closer to consumer), open long hours, 7 days a week and carrying
a limited range of staples and groceries. Ex. – In & Out.
FUTURE ROADMAP:
Indian Government seems determined to go ahead and gradually liberalize the
retail sector despite continuing opposition from the Left parties. The amazing fact is that
some movement is taking place. This seems to be due to Prime Minister Manmohan
Singh's conviction that bringing in the big retail chains will unleash a wave of
employment in rural and urban areas. The fears of the Left, on the other hand, are that the
entry of retail giants will mean job losses as small mom-and-pop retailers get pushed out
of existence. The fact is there is merit in both arguments. On the plus side, it is clear that
agriculture is not providing enough jobs for the economy and there is an unprecedented
wave of migration to urban areas. The entry of retail chains, which buy straight from the
farmer, is bound to bring about greater purchasing power as the producer will get much
better prices. Similarly, this gives a bonanza to the consumer who gets food products
sourced directly from the farmer without having to pay the middleman's commission. But
the Agitators have a point too. They are worried that the 15 million small retailers in the
country may be forced out of existence. India has the largest retail economy in the world,
according to a study by the CII (Confederation of Indian Industry). And the time has
certainly come for retail chains to enter this country. The process has been gradual, as
mentioned earlier, but even so large retail has made a dramatic impact in the areas where
it has been allowed to make an entry. In the long run, it is clear that the entry of large
retail chains will benefit the agricultural sector. They will also have a long-term effect on
agricultural unemployment, which is the big worry for policymakers right now. Domestic
retail chains have already been allowed to set up business and it is now merely a matter
of allowing bigger foreign players into the country Multinational giants like Wal-Mart
and Carrefour also have deep pockets and their huge investible funds are meant for
sourcing products from rural areas, which in turn will provide more jobs. The thinking in
the commerce ministry right now seems to be that the existing policy of allowing only
single brand retailing can be extended in a phased manner to multi-brand retailers.
32
34. SWOT Analysis of Indian Retail Sector-
Strengths
Increasing demand driven by the country‟s young working population
Increase in per capita income which in turn increases the household consumption
Create win-win situation for all links in value chain (suppliers, producers, retailers
and customers).
Improvement in the standard of living.
Technology intensive industry
Weaknesses
Lack of expertise in Supply Chain Management
Inadequate Infrastructure
Stringent Labor Laws
Lack of specialized professionals in Industry
Lack of industry status.
Government Restrictions on FDI
Non-Availability of Government Land.
Opportunities
Change in consumer behavior pattern and increase in disposable income.
It was estimated that millions of people would be engaged in Retail and
Retail support activities by 2012
Indian rural markets offer a sea of an opportunity for the retail sector.
Upcoming international Players
Healthy prospect for the fashion industry.
Approximately only 5% to 8% of retail sector is organized, so there is
large scope for organized retail.
Threats
Indian taxation system favors small retail business.
Competition from unorganized Sector to the organized Sector.
Middle class Psychology.
Increasing Real Estate prices
Govt.‟s decision on FDI in India.
33
35. Customer feedback in a retail setting is important to the growth and success of
organization. Customers can tell how to improve product line, increase sales through
more effective marketing, enhance customer service, improve your store's layout to make
shopping easier and any other changes you should consider to increase revenue.
What is customer Feedback?
Customer feedback is the process or specific instance of providing information to
businesses about products, services and customer service. Management, marketing and
sales departments can all use customer feedback to streamline processes and improve
profitability.
Information coming directly from customers about the satisfaction or
dissatisfaction they feel with a product or a service. Customer comments and complaints
given to a company are an important resource for improving and addressing the needs
and wants of the customer. The information is procured through written or oral surveys,
online forms, emails, letters, or phone calls from the customer to the company.
Importance of customer feedback –
A happy customer leads to a successful business. Taking customers‟ thoughts,
comments and feedback seriously can lead to increased sales and opportunities for
improvement. Understanding what customers think of you can only improve service
delivery and quality of products leading to business sustainability. Monitoring customer
feedback can be done through several mechanisms including written and oral satisfaction
surveys and online comments. Customer feedback is vital to making a business work.
Your customers are the heart of your operation; without them, it would be impossible to
have any of the success that you do. Customer feedback can be an excellent way to keep
your business going in a positive direction.
1. Get Honest Opinions -Customer feedback is a vital way to get honest opinions
on your services or products from people who are familiar with them. These
opinions can make it easier to get into the minds of the most important critics.
2. Improve Relations -When customers feel that a business truly cares about them
and what they think, they may be more likely to be loyal customers. When a
business makes changes according to feedback, it shows that they truly listen and
respect those opinions.
34
36. 3. Inexpensive Business Advice -Some businesses pay thousands of dollars for
someone to come in and tell them what improvements need to be made to the
business to get more customers. Customer feedback is essentially inexpensive
business advice directly from the source.
What is shrinkage & causes of shrinkage?
Inventory shrinkage is the loss of products between point of manufacture or
purchase from supplier and point of sale. The term shrink relates to the difference in the
amount of margin or profit a retailer can obtain. If the amount of shrink is large, then
profits go down which results in increased costs to the consumer to meet the needs of the
retailer.
Retail shrinkage is the difference in the value of stock as per the books or system
and the actual stock available in the shop or Shrinkage is the reduction in physical
inventory caused mainly by process failure, errors, shoplifting and employee theft. The
causes of retail shrinkage are mainly employee theft, shoplifting, administrative errors
and vendor fraud.
Example – If Theoretical inventory = 5, Physical Inventory = 4, sales= 20 then Shrinkage
(5-4)/20=5%
35
37. 1. Employee Theft:
Also known as “internal shrinkage”, this is caused by the
employees of the store such as pilfering merchandise, cash, provisions etc.
Employee theft and embezzlement of accounts cause almost half of the
total retail shrinkage. Cashier caused shrinkage occurs in ways of wrong
recording of transactions, forging receipts, misuse of the register or
computer etc.
2. Shoplifting:
Otherwise called “commercial burglary”, this is one of the most
common crimes. In slang language it is expressed as “five-finger
discount”. Studies show that one out of twelve customers might be a
shoplifter. Professional shoplifters are called “boosters”. Shoplifters
require privacy. Things should be arranged in such a way so as to avoid
“blind spots” in the store and thus avoid internal loss. Small and expensive
items should be kept behind the counter or locked in a display case. CCTV
filming all areas of the store is the most successful way to prevent
shoplifting. Installation of physical obstacles such as alarm at the store
exits, and closing the back exit of the shop would also prove beneficial.
3. Administrative Errors:
Administrative and paperwork errors such as mark up and mark
down of the prices cause around 15 percent of the retail shrinkage.
4. Vendor Fraud:
Vendor Fraud is intentional theft or inventory loss associated with
vendors, often involving the accurate delivery and return of merchandise.
Typical vendor fraud prevention methods are vendor truck and delivery
audits and detailed receiving.
5. Other Causes:
Unrecorded price changes
Internal cost fluctuations
Spoilage/Perishables/Salvage
Inaccurate physical counts
36
38. Benefits of reducing shrinkage:
Benefits Positive Impact
Lower out of stock & less Higher Consumer
To frustration Satisfaction
Consumer
More open merchandising More convenience
Greater choice Maintain loyalty
Lower cost Increased sales
To Higher store loyalty Customer Retention
Retailer More efficient replenishment Increase profit
Improved market share
On this background of the importance of customer feedback and shrinkage
reduction; the project has been conceptualize to understand various aspects about Food
Bazaar through study of customer feedback and also the reasons to identify shrinkage and
suggest measures for shrinkage reduction and enhancing customer satisfaction.
37
40. Table No. 5. 1: The different sources from where the respondents came to know about
Big Bazaar & its various offers.
Response Newspapers TV Internet Hoardings Friends
No. of
34 26 13 21 14
customers
Percentage 32% 24% 12% 19% 13%
Response From different sources
13%
32%
19% Newspapers
TV
Internet
12% Hoardings
24%
Friends
Inference:
From the above table we can ascertain that majority of customers i.e.- 32% &
24% came to know about big bazaar & it‟s offers from local newspapers & TV
respectively.
Table No. 5. 2: Frequency of purchasing of customers in Food Bazaar.
39
41. More than
Once in a Once in
Response once in a Fortnightly Rarely
week Month
week
No. of
6 21 8 30 15
Customers
Percentage 7% 26% 10% 38% 19%
Purchasing Percentage of Customers
19% 7%
26% More than once in week
Once in a week
Fortnightly
38% 10% Once in a month
Rarely
Inference:
Majority of the customer i.e.- 38% visits store once in month, followed by 26%
customer once in a week. Thus we can say that majority of customer visit Food Bazaar
once in month, may be during weekends. We can conclude that the customer do not visit
Food Bazaar for their petty daily purchase, they are visit to other stores.
40
42. Table No. 5. 3: The factors which attract customers to Food Bazaar.
Quality of Offers at Price of Availability Any
Response
products Food Bazaar Products of Product Other
No. of
21 28 15 14 2
customers
Percentage 26% 35% 19% 17% 3%
Factors which attract customers
3%
17% 26%
Quality
19% Offers
Price
Availability
35% Any Other
Inference:
From the data collected we can determine that most of the customer i.e.- 35%,
visit the store by perception that offers are good at Food Bazaar, 26% for the quality of
product, 19% for price of product & 17% for easy availability of product. From this we
can say that Food Bazaar have to increase their offers & other 3% customers are visit
seeking convenience.
41
43. Table No. 5.4: Most frequently visited sections in Food Bazaar.
Section Food Non-Food General Merchandise
No. of
45 25 10
customers
Percentage 56% 31% 13%
Customers favourate section
13%
31% 56% Food
Non-Food
General Merchandise
Inference:
Most of the customers i.e.- 56% visit food section when they enter Food Bazaar &
31% visits non-food section. So we conclude that non-food & GM section have to
combinely take efforts to attract customers.
42
44. Table No. 5.5: Ranking of sections as per the amount of time spent by customers in Food
Bazaar.
Section Food Non-Food General Merchandise
No. of
41 28 11
customers
Percentage 51% 35% 14%
Ranking of sections
14%
51%
Food
35%
Non-Food
General Merchandise
Inference:
Most of the customers who visits to the Food Bazaar, would like to spend more
time in food section which means it shows customer preference towards food section
followed by non-food & GM section respectively.
43
45. Table No. 5.6: Ranking of sections as per the amount spent by customers in Food
Bazaar.
Section Food Non-Food General Merchandise
No. of
43 25 12
customers
Percentage 54% 31% 15%
Ranking of sections
15%
54%
31% Food
Non-Food
General Merchandise
Inference:
From the above table, we can analyze that the customer of Food Bazaar spend
more amount in food section, which shows that food section has different variety of
products that can customer buy. Next customer prefers non-food & then GM.
44
46. Table No. 5.7: Awareness of private labels.
Response Yes No
No. of
55 25
customers
Percentage 69% 31%
Awareness of private labels
31%
Yes
69%
No
Inference:
From the above table, it is clear that awareness of private labels is good which is
near about 70%. So instead of creating awareness they should try to increase the sale of
private labels.
45
47. Table No. 5. 8: Awareness about private brands of Food Bazaar.
Tasty Fresh & Clean
Product Name Dreamline Sach
Treat Pure Mate
No. of
34 35 25 31 22
Customers
Percentage 23% 24% 17% 21% 15%
Awareness about private brands
15%
23%
21% Tasty Treat
Fresh & Pure
24% Clean Mate
Dreamline
17%
Sach
Inference:
From the above table it is observed that private labels of food section are well
known to customers which is in average 47%, private labels of non-food section are
quietly known to customers which is 32% & remaining 21% belongs to Gm section.
Most preferred brands are Fresh & Pure, Tasty Treat & Dreamline respectively
while least preferred brands are Clean Mate & Sach.
46
48. Table No. 5.9: Effect of various sales promotional offers of Big Bazaar, on the buying of
consumers.
Sabse
Offer Wednesday Weekend Exchange
MBB Saste 5 Other
Names Bazaar Offers Mela
Din
No. of
22 30 23 24 18 4
Customers
Percentage 18% 25% 19% 20% 15% 3%
sales promotional offers
3%
15% 18%
Wednesday Bazaar
MBB
20%
25% Weekend Offers
Sabse Saste 5 Din
Exchange Mela
19%
Other
Inference:
From the above table, we can analyzed that from regular offers most of the
customers shops once a month in MBB & weekend offers which is 25% & 19%
respectively so offers should be maximize in MBB instead of Wednesday bazaar.
47
49. Table No. 5.10: Effects of discounts/schemes on buying behavior of the customers in
Food Bazaar.
Response Always Mostly Sometimes Rarely Never
No. of
19 22 18 18 3
Customers
Percentage 24% 27% 22% 23% 4%
Effects of discounts/schemes
4%
24%
23%
Always
Mostly
22% 27% Sometimes
Rerely
Never
Inference:
From the above table it is observed that discounts or schemes strongly affect the
buying behavior of customers so various offers should be increased to increase the
footfall.
48
50. Table No. 5.11: Perception of consumers about prices of products in Food Bazaar.
Moderately Moderately Very
Price Very Less Same
Less High High
No. of
9 32 20 11 8
Customers
Percentage 11% 40% 25% 14% 10%
Perception about prices
10% 11%
14%
Very Less
Moderately Less
40%
25% Same
Moderately High
Very High
Inference:
From the above table it is observed that most of the people perceptions about
products available in Food Bazaar are comparatively less than market price.
49
51. Table No. 5.12 .1: Level of satisfaction about Quality of products in Food Bazaar.
Neither
Satisfaction Highly Somewhat Somewhat Highly
Satisfied Nor
level satisfied Satisfied Dissatisfied Dissatisfied
Dissatisfied
No. of
15 47 14 4 0
Customers
Percentage 19% 59% 17% 5% 0%
level of satisfaction about Quality
0%
5% 19%
17% Highly Satisfied
Somewhat Satisfied
Neither Satisfied Nor
Dissatified
59% Somewhat Dissatisfied
Highly Dissatisfied
Inference:
From above table it is observed that highly satisfied customers are 19%,
somewhat satisfied are 59% which is very good figure, neither satisfied nor dissatisfied
are 17%, somewhat dissatisfied are only 5% & there are no highly dissatisfied customers.
50
52. Table No. 5.12.2: Level of satisfaction about Price of products in Food Bazaar.
Satisfaction
Neither
level Highly Somewhat Somewhat Highly
Satisfied Nor
regarding satisfied Satisfied Dissatisfied Dissatisfied
Dissatisfied
Price
No. of
19 31 26 4 0
Customers
Percentage 24% 39% 32% 5% 0%
level of satisfaction about Price
0%
5%
24% Highly satisfied
32%
Somewhat Satisfied
Neither Satisfied Nor
Dissatisfied
39%
Somewhat Dissatisfied
HighlyDissatisfied
Inference:
From above table it is observed that highly satisfied customers are 24%,
somewhat satisfied are 39%, neither satisfied nor dissatisfied are 32%, somewhat
dissatisfied are only 5% & there are no highly dissatisfied customers.
51
53. Table No. 5.12.3: Level of satisfaction about Availability of products in Food Bazaar.
Neither
Product Highly Somewhat Somewhat Highly
Satisfied Nor
Availability satisfied Satisfied Dissatisfied Dissatisfied
Dissatisfied
No. of
21 34 17 7 1
customers
Percentage 26% 43% 21% 9% 1%
level of satisfaction about Availability
9% 1%
26% Highly satisfied
21%
Somewhat Satisfied
Neither Satisfied Nor
Dissatisfied
43% Somewhat Dissatisfied
HighlyDissatisfied
Inference:
From above table it is observed that highly satisfied customers are 26%,
somewhat satisfied are 43% , neither satisfied nor dissatisfied are 21%, somewhat
dissatisfied are only 9% & there are only 1% highly dissatisfied customers.
52
54. Table No. 5.12.4: Level of satisfaction about Accessibility of products in Food Bazaar.
Neither
Product Highly Somewhat Somewhat Highly
Satisfied Nor
Accessibility satisfied Satisfied Dissatisfied Dissatisfied
Dissatisfied
No. of
14 38 14 11 3
customers
Percentage 17% 47% 18% 14% 4%
level of satisfaction about Accessibility
4% 17%
14%
Highly satisfied
18% Somewhat Satisfied
Neither Satisfied Nor
47% Dissatisfied
Somewhat Dissatisfied
HighlyDissatisfied
Inference:
From above table it is observed that highly satisfied customers are 17%,
somewhat satisfied are 47%, neither satisfied nor dissatisfied are 18%, somewhat
dissatisfied are only 14% & there are 4% of highly dissatisfied customers.
53
55. Table No. 5.12.5: Level of satisfaction about offers in Food Bazaar.
Satisfaction
Neither
level Highly Somewhat Somewhat Highly
Satisfied Nor
related to satisfied Satisfied Dissatisfied Dissatisfied
Dissatisfied
offers
No. of
19 38 18 4 1
Customers
Percentage 24% 47% 23% 5% 1%
level of satisfaction about offers
1%
5%
24% Highly satisfied
23%
Somewhat Satisfied
Neither Satisfied Nor
Dissatisfied
47%
Somewhat Dissatisfied
HighlyDissatisfied
Inference:
From above table it is observed that highly satisfied customers are 24%,
somewhat satisfied are 47% , neither satisfied nor dissatisfied are 23%, somewhat
dissatisfied are only 5% & there are only 1% highly dissatisfied customers.
54
56. Table No. 5.12.6: Overall satisfaction level of customers about Food Bazaar.
Neither
Overall Highly Somewhat Somewhat Highly
Satisfied Nor
Satisfaction satisfied Satisfied Dissatisfied Dissatisfied
Dissatisfied
No. of
6 64 6 4 0
Customers
Percentage 7% 80% 8% 5% 0%
Overall satisfaction level
0%
8% 5% 7%
Highly Satisfied
Somewhat Satisfied
Neither Satisfied Nor
Dissatisfied
80% Somewhat Dissatisfied
Highly Dissatisfied
Inference:
From above table it is observed that highly satisfied customers are 7%, somewhat
satisfied are 80% which is very good figure, neither satisfied nor dissatisfied are 8%,
somewhat dissatisfied are only 5% & there are no highly dissatisfied customers shows the
Food Bazaar is aggressive in overall satisfaction.
55
57. Table No. 5.13: Likelihood of customers to recommend Food Bazaar to others.
Definitely
Definitely Probably Probably
Not will not
Recommendations will will will not
Sure recommen
recommend recommend recommend
d
No. of
22 24 24 6 4
customers
Percentage 27% 30% 30% 8% 5%
Recommendation for Food Bazaar
Definitely will
5% recommend
8%
27%
Probably will
recommend
30% Not Sure
30% Probably will not
recommend
Definitely will not
recommend
Inference:
From the above table we can analyze that percentage of definitely & probably
recommendation is quite good which shows the customer loyalty. As well as not sure is
30%, gives the opportunity to make them loyal by giving little push or efforts.
56
59. FINDINGS:
1. It can be said that there is a good impact of newspaper & TV media for the
promotion of Big Bazaar as more than 50% awareness is spread through it.
2. Promotional strategies like Monthly Bachat Bazaar & Wednesday Bazaar have
good response as 38% & 26% respectively, which means these promotional
strategies are resulting into increased number of customers and thereby increased
sales.
3. Significant numbers of Customers are attracted at Food Bazaar because of sales
promotion offers as 35% of respondents came for shopping assuming the great
offers provided by Food-Bazaar.
4. Customers spend more money on food section compared to general merchandise
section as food section caters to basic or daily needs while GM section provides
the products which are required on less frequent basis.
5. There is considerable products awareness of private labels as Tasty Treat has 23%
awareness, Fresh & Pure has 24% awareness, Dreamline has 21% awareness,
Clean Mate has17% awareness &Sach has 15% awareness of total awareness of
private labels. The reasons for purchase of private labels include, less prices of
private labels compared to national products and variety of offers & discounts.
6. It is observed that discounts or schemes strongly affect the buying behaviour of
customers. So the variety and frequency of offers should be increased to increase
the footfall.
7. It is observed that most of the customers‟ perception about prices of products in
Food Bazaar is moderately less than market price.
8. Food Bazaar is successful in satisfying almost 80% of its customers. Thus the
overall satisfaction of Food Bazaar is very good.
9. A significant proportion of customers are likely to recommend Food Bazaar to
others, which is an indication of their satisfaction and their loyalty for Food
Bazaar.
10. Major shrinkage occurred in chocolate section of food department due to
employee theft & shoplifting.
58
60. 11. Improper storage of the biscuits, wherein heavily boxes kept on one another,
which resulting into the damage with biscuits, thereby increase in the shrinkage.
12. In Farm fresh section instead of using FIFO method for fruits & vegetables, it was
observed that the new arrival of fruits & vegetables have been kept on top of old
stock, resulting into generation of waste products and thus increased in shrinkage.
59
61. SUGGESTIONS:
1. As there is good impact of Newspaper & TV Media, Company should continue
promotion with Newspaper & TV Media. Along with that as internet is found to
be one of most frequently used media in urban areas, Big Bazaar should focus on
internet promotion.
2. As customers spend more time & money in food section, other section can be
benefited through this by giving combined offers which results in increase in sale
of other sections too.
3. Awareness of Sach & Clean Mate private labels has to increase by keeping them
at the starting of respective section. Also it is necessary to give product sampling
or free samples with some other private labels which can generate greater sale.
4. As significant numbers of customers are satisfied, now Food Bazaar should focus
on customer delightment. For this some innovative ideas like putting health tips in
food section in front of every food, keeping the boards of recipies can be
implemented.
5. It is necessary to do benchmarking on weekly basis to know facilities & services
provided by competitors. By implementing this Food Bazaar can improve in the
areas in which it is lagging behind the competition.
6. It is necessary to tap the nearer customers for petty daily purchase by providing
home delivery service. In this home delivery service Food Bazaar can supply
daily needs like Fruits & vegetables, milk, bread & toasts etc.
7. Chocolate section should be kept under the CCTV surveillance to avoid the
instances of employee theft & shoplifting. Also an arrangement of bins has to be
done for biscuits to reduce damage of biscuits resulting in reducing shrinkage.
8. As the landing price of Food-Bazaar is very low, company should keep the price
of products bit low by providing offers & discounts; than other competitors to
increase footfall.
9. There is a need of keeping the new arrival of Fruits & vegetables under the old
Fruits & vegetables. Hence the FIFO system is to be maintained in order to reduce
the shrinkage.
60
62. CONCLUSION:
Food Bazaar is a retail giant providing all goods under one roof. It is a store
which is for price conscious people, it provides them variety or options for purchasing.
As the slogan of Big Bazaar “Naye India Ka Bazaar ” & Food Bazaar‟s Slogan “Ab Ghar
Chalana Kitna Aasan”, has been attracted most of the customers. This slogan attracts
many customers & ultimately increases in number of footfalls in Food Bazaar.
According to this study, most of customers are very much satisfied with the
quality of products in Food Bazaar. Also overall satisfaction of customers is very good.
The offers & discounts also attract lot of customers to purchase items from Food Bazaar
rather than outside. Also convenient shopping & self-service attracts the customers. But
in today‟s scenario just providing products at cheaper prices is not sufficient for surviving
in the market; people require more than just products, they want the products with
maximum service. Providing quality goods at cheaper prices can be done by any retail
outlets but what can make difference is the services provided by the retail outlets.
Food Bazaar management should now focus on the service part, they should try to
attract new customers and sustain their old customers by providing them high quality
service which will drive them to the store and will not let them move in to any other
store. This service may include providing of instant home delivery services, providing
proper cooling inside the store, billing time reduction, enhancing the ambience of the
store and reducing the chances of customers getting irritated.
In the general merchandise section, the purchasing percentage of customer was
less than other section, while purchasing percentage of food section is very high. Hence
some of combined offers can be developed for both GM and Food section, which will
help to increase sales of GM section also. There were a large percentage of customers
who are somewhat satisfied with the price level. They feel that prices in Food Bazaar are
moderately less than others.
They should now even try to target the affluent class people to purchase from
them by providing high end products. Food Bazaar has already established itself as a
brand; with more customer centric initiatives it can strengthen its brand further in the
market.
61
63. BILIOGRAPHY
Books:
1. Kotler & Keller, Marketing Management, 14e Edition, Pearson Education,
Pg.120, 206 to 208
2. Dash & Malhotra, Marketing Research: An Applied Orientation, Sixth
Edition, Pearson Education, Pg. 6, 68 to70, 98, 149, 170, 176, 192, 292 to
308, 326, 386, 434, 726 to 734
3. C.R.Kothari, Research Methodology, Second Edition, New age
international publisher, Pg. 1,7,8
4. Paul Freathy, The retailing book: Principles & Applications, Pearson
Education, Pg. 125 to 134, 240 to 242
Company Publications:
1. Annual Report 2009-10
2. Annual Report 2010-11
3. Stock-take Report July 2012
Websites:
1. www.pantaloon.com
2. www.fvrl.com
3. www.economictimes.com
62
